The battle against climate change is not just about preventing catastrophic impacts on ecosystems and human life; it also presents a significant opportunity for medium- and long-term economic growth. This is the finding of a new report by the OECD and UNDP. They believe that stronger efforts to tackle climate change could add 0.2% to global GDP by 2040, which is roughly equivalent to the GDP of Sweden.
The report, titled Investing in Climate for Growth and Development - The Case for Enhanced NDCs, was released following the 16th Petersberg Climate Dialog in Berlin, which took place from March 25 to 26. The event, attended by delegates from 40 countries, is seen as a key step toward preparing for COP30, the upcoming global climate summit in Belem, Brazil, in November.
Nearly a decade after the landmark COP21 in Paris, the report highlights that countries are still struggling to meet their climate commitments. Specifically, the authors point out that many nations have yet to present their Nationally Determined Contributions (NDCs) — the pledges to help limit global warming to 1.5°C. While these NDCs were supposed to be submitted by February 10, only 13 out of 175 countries have met the deadline.
Despite these setbacks, the report argues that nations would benefit from maintaining high climate ambitions and accelerating action. Projections show that if countries renew their commitments in line with the Paris Agreement goals, they could reduce climate-related risks, avoid costly damages, and boost the global GDP by 3% by 2050, and by 13% by 2100.
Beyond the economic benefits, the authors also stress that such efforts would be a significant step toward a low-carbon economy. Currently, the world emits 0.34 kg of CO₂ per dollar of economic output. However, under an optimistic scenario, this carbon intensity could drop by more than half, to just 0.14 kg by 2040.
"Investing in clean energy and energy efficiency increases productivity and innovation, balancing the economic impact of policy constraints on prices and consumption," the report explains. "Reinvesting carbon revenues can further boost GDP while ensuring a just transition and securing public support for climate policies".
On the other hand, the authors warn that political uncertainty can hinder investment and slow growth. Unclear policies could delay private sector investments and reduce global GDP by 0.75% by 2030.
This report comes at a time when global climate engagement appears to be slipping, particularly with the second withdrawal of the U.S. from the Paris Agreement. As the world’s second-largest emitter of CO₂, behind China, the U.S. accounts for nearly 15% of global emissions. The question now is whether this report will reignite international commitment to tackling climate change in the coming months.
From Dakar to Nairobi, Kampala to Abidjan, mobile money has become a lifeline for millions of Africa...
Airtel Gabon, Moov sign deal to share telecom infrastructure Agreement aims to cut costs, boo...
• WAEMU posts 0.9% deflation in July, second month in a row• Food, hospitality prices drop; alcohol,...
Malawi votes in high-stakes presidential election Tuesday Economic crisis, inflation dominate vot...
Vision Invest invests $700m in Arise IIP, Africa’s largest private infrastructure deal in 202...
Mombasa's commuter train service resumed on September 17, 2025, after modernization. The expanded 16.6 km line connects Mombasa's main district and...
INP-HB and HABG signed an MoU to develop an Executive Master's in Compliance and Anti-Corruption. The program aims to train competent professionals in...
DBSA closed a 100 mln rand ($5.7 mln) financing for EV charging stations. Local firm Zero Carbon Charge will build 60 solar-powered stations by...
Liberia granted TotalEnergies rights to explore four offshore blocks totaling 12,700 km². The French group will run a program including 3D seismic...
Surprisingly, only one African song made it onto Rolling Stone's list of the 500 Greatest Songs of All Time. The track is "Essence," a collaboration...
The Umhlanga Festival, also known as the “Reed Dance,” is one of the most iconic cultural events in the Kingdom of Eswatini in Southern Africa. Every...